Outsource Funding with Plum Investment (LA 875)

Outsource Funding with Plum Investment (LA 875)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hello.

Steven Butala:                   Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.

Jill DeWit:                            And I’m Jill DeWit broadcasting from sunny southern California.

Steven Butala:                   Today Jill and I talk about outsourcing, funding your deals with Plum Investment. You know what, right before the show, Jill said, “This should be a show with Justin.” Justin Sliva who does the show on Friday with me called Finance Friday, ’cause he is Plum Investment. And I said, “No, no. Wait a second. What the show is really about is how a member of ours, after about a year or so and getting good experience and really succeeding at this, stepped up and provided a product that we are not innately interested in providing for a lot of reasons, but it makes us stronger as a group.”

The real win for us is that if we get more members, we get a bigger intelligent community of people who are doing deals so we can do deals with them. And he wins because he provides financing and makes a little dough on that. So, it’s more of a discussion between Jill and I, and listeners without Justin himself, which we’ll talk about, Justin will join us on Friday to celebrate that.

Jill DeWit:                            Exactly.

Steven Butala:                   Before we get into it, though, let’s take a question posted by one of our members on the LandInvestors.com online community. It’s free.

Jill DeWit:                            Steven asks, “Have any of you used an escrow for a reduced fee to just review the documents and generate a preliminary title report for the buyer on a terms deal where the title will not change until the land contract terms are met and the parties are okay transferring funds directly? So, no escrow service needed for that function.” That is brilliant.

Steven Butala:                   I love the concept. But I’m not so sure an escrow person is who you want. What you want is maybe a paralegal who’s done a bunch of deals. There’s a lot of paralegals who become paralegals before they’re attorneys and they have no experience at all. So, excuse me, what you want is probably to hire a law firm and you’re gonna get sticker shock over this, but it’s a great question and I love the concept because you want to get everything done right, but the unfortunate answer is yes you can do it, it’s going to be expensive, and the first time you do it, by the way, you need to look over their shoulder every step of the way and learn, because it’s gonna be eventually you who’s gonna do it.

Or you could use that escrow, ’cause escrow companies do terms deals all the time. They’re just not land contract deals. They’re deed of trust deals like a mortgage, and I don’t want to get too complicated here, but that’s not really how you want to do a terms deal. However, I can’t express this enough, having a second set of eyes to look over this stuff is brilliant.

Jill DeWit:                            Never crazy.

Steven Butala:                   Today’s topic, outsourcing funding with Plum Investment. This is the meat of the show.

Jill DeWit:                            I see this as filling a huge need that … kind of the missing piece.

Steven Butala:                   Me too.

Jill DeWit:                            Let me back up. Land academy … I wrote it down as kind of like there’s five pieces. You want to do this business, number one, you need to have the knowledge. Well, check. Land Academy came along, we covered that. Number two, you gotta have access to the data. Well, check. We got that. Then we’ve gotta have mail, gotta get the data out to offers. Well, we created offers to owners. Check, we have that. Next you gotta have … all the tools and things around doing due diligence and closing the deal. Well, check. We covered that, too. So, the last-

Steven Butala:                   [crosstalk] and InfoReports.com do that perfectly well.

Jill DeWit:                            As well as Title Pro 24/7 and other things in our toolbox, if you will. And then the last thing was darn funding.

Steven Butala:                   So great, you’ve got a deal, you’ve done your due diligence. You’re sitting there looking at this great deal. You’re about to pay $10,000 for it, you know it’s worth $35,000. I don’t have $10,000.

Jill DeWit:                            Yeah, shucks. What do I do? And here comes Justin, and here comes … and where do you find this, by the way? If you go to LandInvestors.com, our online community, at the very top there’s a menu item that says, “Deal funding”. And that’s what you do, and just fill that out. It’s awesome. And you do not have to be a member, by the way. Although we want you to be a member. Do you need to be a member?

Steven Butala:                   I don’t know.

Jill DeWit:                            I think there’s a box that you check, now that I think about it. ‘Cause I know he said people come to him that are not members, as I’m opening-

Steven Butala:                   You do not have to be a member.

Jill DeWit:                            Don’t mean to open up a whole can of worms here.

Steven Butala:                   Now that I’m thinking about it.

Jill DeWit:                            I don’t think you technically have to because a good deal, everybody’s gonna get … We will fund a good deal, someone will fund a good deal. Slash however, I will say this. We all know what we all know and we know that people who are members of Land Academy, we know what the due diligence went into, we know how they pick the county, we know all the things that they checked ahead of time, so the deals are usually better deals going through the process, so they definitely get pushed to the top.

Steven Butala:                   There’s no way you can know this. Half the listeners are sitting here thinking, “I don’t need Land Academy. I’ve done 15 deals.”

Jill DeWit:                            Right.

Steven Butala:                   “I’ve done it with Jack Bosch. I’ve done it with Land Geek. I get it.” Half the people that are with us in our membership group have said the same thing.

Jill DeWit:                            Yeah, and that they all came from other things and I think it’s great. We could fill in the pieces. There are some holes and we’ll help you with that.

Steven Butala:                   That’s a nice way to say that.

Jill DeWit:                            Thank you.

Steven Butala:                   I was gonna say a bunch of other stuff, but I won’t.

Jill DeWit:                            Good. But the point of the show today, though, is about this member taking it upon himself to create this funding source basically and helping everybody make more money really by completing deals that they were having trouble getting funding.

Steven Butala:                   Here’s the true gem of what’s possible with Plum Investment. And again, Justin and I will talk about it on Friday. Every Friday we talk about it. You don’t have to have any money to do this. That is a game changer for joining Land Academy and eventually House Academy. And you shouldn’t. Because you shouldn’t sit around and say, “Well, I have $15,000 that I’ve allocated in my life to spend on acquisitions. I’m gonna join Land Academy, learn how to do it, and I’m gonna spend this $15,000. I’m gonna turn it into $30,000. And when it’s $30,000, I’m gonna turn it into $60,000.”

Jill DeWit:                            Well, that’s how we have been.

Steven Butala:                   And that’s a concept that you should never lose in your mind, but you don’t have to start with the-

Jill DeWit:                            You don’t have to.

Steven Butala:                   You can start with, let’s say you have a $100,000 deal that you’re bringing, ’cause you’re great at Zeta. And it’s worth $300,000. This just happened.

Jill DeWit:                            Right. ’cause this is how-

Steven Butala:                   That’s the kind of deal that now you got, and then you’re gonna split that? You’re gonna split that with Justin, the proceeds of that. That’s gonna launch your career. You don’t have to have any money to start.

Jill DeWit:                            You don’t have to.

Steven Butala:                   Truly.

Jill DeWit:                            I don’t want to-

Steven Butala:                   it’s not like these guru stupid shows.

Jill DeWit:                            Well, you know, but that’s what I want to make sure we’re talking about. I don’t want to sound like that, Steven, ’cause that’s not exactly what we’re saying. And we have always told people, “What we don’t want you to ever do is take out a credit card and do that kind of a thing. Save up the money if you need it to get going. Get this right.”

And we have always said pay cash, buy your own thing, but I think for me as a new person, what always happens, you’re going along, maybe you’re buying $1000 properties and flipping them for $3000. And then you can move to $5000. Invariably, there’s gonna be someone that calls back and goes, and you say, “What else do you have?” And they go, “Well, actually, my dad and I own 160 acres over here. You wouldn’t be interested in that, would you?” And this is where you can now go, “Wow, I would.” And for most people, then they panic. And they feel like, “I don’t have that kind of money.” Now you do. That’s how I see it. It’s ’cause I don’t want to change what we’ve said in the past.

Steven Butala:                   Well, this is a new tool.

Jill DeWit:                            Yes.

Steven Butala:                   So, I think that the difference, it doesn’t matter. I mean, you’re listening to the show, so you know the difference.

Jill DeWit:                            Right.

Steven Butala:                   You really truly don’t have to have any money. Let me rephrase that.

Jill DeWit:                            You gotta send out the mail.

Steven Butala:                   How you send out the mailers and how you price the mailers, and the properties that you’re fishing for, don’t have to be $1000 properties.

Jill DeWit:                            That’s the point. Thank you.

Steven Butala:                   They don’t have to be tied to your money that you’ve allocated to do this.

Jill DeWit:                            Correct.

Steven Butala:                   You can shoot for the moon now and if it’s a smoking, smoking deal that fits within Plum’s investment criteria, and frankly us, too. We do some deals, too.

Jill DeWit:                            Now you’re okay.

Steven Butala:                   You can get a lot farther a lot faster, as ironic as it sounds.

Jill DeWit:                            That’s true.

Steven Butala:                   A lot farther a lot faster financially without using your own money, using Plum.

Jill DeWit:                            That’s true.

Steven Butala:                   Does that mean-

Jill DeWit:                            And it’s not like you’re having to call your dad or call your rich uncle or something like that.

Steven Butala:                   Or use your money.

Jill DeWit:                            Exactly.

Steven Butala:                   Even if you do have 15 or 20 or $30,000, use it on some deals, but this is what we do. We use some money for our deals. Some of our money for deals and some … on bigger deals, we use other people’s money. In a very responsible way. So, it’s a good thing. This is a total game changer and we don’t celebrate stuff enough. You know why we don’t and I don’t?

Jill DeWit:                            Why?

Steven Butala:                   ‘Cause I don’t want to sound all salesy. I don’t want to be like, you know, like you just said. “You don’t have to have any money to …”

Jill DeWit:                            Yeah, I don’t want to say that.

Steven Butala:                   “No money down.”

Jill DeWit:                            Yeah, I don’t want to say that.

Steven Butala:                   That’s the worst thing. Nothing more turn off.

Jill DeWit:                            “Anybody can do this,” I don’t want to say that, too.

Steven Butala:                   Right.

Jill DeWit:                            It’s a lot of work. “It’s easy. We’ll show you the way.” I don’t want to say that. ‘Cause I’m not gonna hold your hand the whole time. You gotta learn this yourself. There’s a lot you gotta bring to the table. Anyway, I’m happy to celebrate this, too, ’cause this is something great that one of our people has done. Oh, go ahead. Sorry.

Steven Butala:                   I was gonna end it.

Jill DeWit:                            Okay. Good. I’ll save what I have to say for the after show.

Steven Butala:                   Well, you’ve done it again. You’ve spent another 10 minutes or so listening to the Land Academy Show. Join us next time where we discuss outsourcing your transaction with TitleNine.com.

Jill DeWit:                            Cool. And we answer your questions posted on our online community, LandInvestors.com. It’s free.

Steven Butala:                   You are not alone in your real estate ambition. What were you gonna say, Jill?

Jill DeWit:                            Happy birthday to you.

Steven Butala:                   Oh, really.

Jill DeWit:                            Happy birthday to you. Happy  birthday dear Steven, happy birthday to you. I was gonna do it at the beginning, I thought, “No, wait.” Then I couldn’t say the middle, “No, wait.” So, now here at the end, it’s Tuesday, today’s your birthday. I have something really fun planned for you tonight.

Steven Butala:                   Tell me.

Jill DeWit:                            I’m not gonna tell you. I certainly can’t say it here.

Steven Butala:                   Jill, you’re the best.

Jill DeWit:                            Thank you.

Steven Butala:                   What were you doing recently and I’m just like, “You are so the right girl for me”? Oh, we went to Costco. We spent … this happens a lot.

Jill DeWit:                            That was funny.

Steven Butala:                   You know, when you own a company like this and there’s lots of employees and they’re constantly starting another company, and so it starts like this, “Oh yeah, we really do need a couple hundred computers. Oh, yeah. It’d be cool to have an electronic dashboard up on the wall.” So, Jill and I went to Costco during the middle of the day ’cause there’s fewer people there and we’re walking out and there’s carts full and Jill says, “This is my kind of Costco run. We’ve got consumer electronics, computers, and alcohol.”

Jill DeWit:                            That’s all that was, alcohol and electronics.

Steven Butala:                   There’s no food, there’s no clothes.

Jill DeWit:                            Nothing.

Steven Butala:                   And I’m like, “Man-”

Jill DeWit:                            No toilet paper.

Steven Butala:                   It’s moments like that, you just know you’re with the right person when they say stuff like that. Like that GPS coordinate thing yesterday.

Jill DeWit:                            Oh, thank you. I appreciate that. And I appreciate you and happy birthday.

Steven Butala:                   Thank you.

Jill DeWit:                            Hey, wherever you are listening or watching, please be sure and rate us there. We are Steve and Jill.

Steven Butala:                   We are Steve and Jill. Information …

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property. I mean it, Jill.

Jill DeWit:                            Thanks.

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